Beware of MLM Scams!Written by Daegan Smith
Most MLM programs are legitimate businesses, however consumers must be aware of MLM scams. A true MLM program will sell products to general public without requiring them to pay anything extra or any hidden costs. They will not force consumers to join MLM system to be a distributor themselves. These types of systems pay commissions to distributors based on actual product sales, not for recruiting. However, there is a danger that any program that concentrates more on new members rather than product sales could be a MLM scam.
An example of a MLM scams is an illegal pyramid scheme. This is where a company promises huge profits from investments into their program. The money is actually made from drawing new people into scheme rather than actual retail sales of real products. Many pyramid schemes pretend to sell actual products, they actually donít. A signal that a program is such a MLM scam is when you never see actual products. Products consistently on backorder or orders that never arrive are also signs of a scam.
Another MLM scam is called a Ponzi scheme. This is very similar to a pyramid scheme, however main difference is in a Ponzi scheme there is not an actual product to begin with. Also, no commission is paid to recruit new members. The operators make their money off sting by promising huge, quick returns from an investment. The money collected from new members is used to pay off other members that have been in program longer. They are given a small return compared to huge promises. The largest part of money goes into promoterís pocket.
How To Start A MLM BusinessWritten by Daegan Smith
When considering whether to start a MLM business, begin with a good look at yourself. You must determine your needs and motivations to see if running a MLM business is right for you. What are your goals? What amount of income do you need for business to provide? Do you want to work full or part-time? Do you need additional training to start business? What will my start-up costs be? A world of questions must be answered before venturing out into world of direct marketing.
If you choose to start a MLM business of your own, you will find yourself in good company. Today, multilevel marketing is big business. There are large multinational corporations doing business as MLMs such as Amway and Mary Kay. Chances are you are considering being a distributor of such a company. They offer good products along will training and support programs to help you get your business on its feet.
The financial requirement to start